We appreciate all your input..your not going to believe this.. back in "02" I walked into the SpeedMerchant in San Jose and ordered Edelbrock Performance RPM package, heads, intake, carb, I told them I have a small block 340, the heads I recieved were small block heads #60779 63cc combustion chamber but not the heads for the 340 #60179 65cc combustion chamber. When we pulled the motor this time, we did it to pull the heads as we have checked everyyyyything else. We noticed the pistons coming out of their sleeves just a wee bit,(18 thousands) the pistons were slapping the deck of the heads and that's what was causing all that racket. The heads are going to the machine shop to have a recess cut into them to accomadate the pistons. You can see where the heads and the tops of the pistons were actually slapping.. shiny little spots about the size of a June bug. Their does not appear to be any damage beyond that. I will look into degreeing the cam, now that the motor is out of the car. Thanks you guys for all your help.
http://www.edelbrock.com/automotive_new/mc/cylheads/chrysler/sb_perf_rpm1.shtml